The Structure of an Arctic Microeconomy: The Traditional Sector in Community Economic Development

Abstract

Data collected durin1g9 84-85 are used to describe income and expenditure flows in Sanikil N.W.T. (the principal settlement on the Belcher Islands in Hudson Bay) and to construct a model that distinguishes between thaen dt rmadoidtieomna sle ctors, as well as between tchaes h and non-cash (traditionaflw d) sectors, of thec ommunity economy. When judbgye dim putedv alue, the harvest from the traditsieocntaolr is the single largest component of community income, butht is activity necessarily has close links with these cctaosrh. Expansion of activity in the traditional food sector is hampered by the necessity of purchasing equipment and fueinl advance, and because therea re few opportunities tos ell the output of this sector, the problem cannobt e solved solelyb y availability of credit. Because the cash income fjroobms in the business and governmesnetc tors of the economy are concentrated in a small number of households, receipts from carving and social assistance play a crucial role in relieving the cash constraint on households operating primarily in the country foods ector. We conclude that policies designed toe nsure the vitality of the country food sector, by removing cash constraints on participation and investigating the sustainabilityo f future harvesting levels, should be an integral part of community development strategies